Correlation Between CALTAGIRONE EDITORE and Compugroup Medical

Can any of the company-specific risk be diversified away by investing in both CALTAGIRONE EDITORE and Compugroup Medical at the same time? Although using a correlation coefficient on its own may not help to predict future stock returns, this module helps to understand the diversifiable risk of combining CALTAGIRONE EDITORE and Compugroup Medical into the same portfolio, which is an essential part of the fundamental portfolio management process.

By analyzing existing cross correlation between CALTAGIRONE EDITORE and Compugroup Medical SE, you can compare the effects of market volatilities on CALTAGIRONE EDITORE and Compugroup Medical and check how they will diversify away market risk if combined in the same portfolio for a given time horizon. You can also utilize pair trading strategies of matching a long position in CALTAGIRONE EDITORE with a short position of Compugroup Medical. Check out your portfolio center. Please also check ongoing floating volatility patterns of CALTAGIRONE EDITORE and Compugroup Medical.

Diversification Opportunities for CALTAGIRONE EDITORE and Compugroup Medical

-0.73

Correlation Coefficient

CALTAGIRONE EDITORE  Compugroup Medical

Pay attention - limited upside

The 3 months correlation between CALTAGIRONE and Compugroup is -0.73. Overlapping area represents the amount of risk that can be diversified away by holding CALTAGIRONE EDITORE and Compugroup Medical SE in the same portfolio, assuming nothing else is changed. The correlation between historical prices or returns on Compugroup Medical and CALTAGIRONE EDITORE is a relative statistical measure of the degree to which these equity instruments tend to move together. The correlation coefficient measures the extent to which returns on CALTAGIRONE EDITORE are associated (or correlated) with Compugroup Medical. Values of the correlation coefficient range from -1 to +1, where. The correlation of zero (0) is possible when the price movement of Compugroup Medical has no effect on the direction of CALTAGIRONE EDITORE i.e., CALTAGIRONE EDITORE and Compugroup Medical go up and down completely randomly.

Pair Corralation between CALTAGIRONE EDITORE and Compugroup Medical

Assuming the 90 days trading horizon CALTAGIRONE EDITORE is expected to under-perform the Compugroup Medical. In addition to that, CALTAGIRONE EDITORE is 1.77 times more volatile than Compugroup Medical SE. It trades about -0.04 of its total potential returns per unit of risk. Compugroup Medical SE is currently generating about 0.14 per unit of volatility. If you would invest  2,108  in Compugroup Medical SE on April 24, 2025 and sell it today you would earn a total of  122.00  from holding Compugroup Medical SE or generate 5.79% return on investment over 90 days.

Time Period	3 Months [change]
Direction	Moves Against
Strength	Weak
Accuracy	71.43%
Values	Daily Returns

CALTAGIRONE EDITORE  vs.  Compugroup Medical SE

CALTAGIRONE EDITORE

Risk-Adjusted Performance

Very Weak

Over the last 90 days CALTAGIRONE EDITORE has generated negative risk-adjusted returns adding no value to investors with long positions. In spite of comparatively stable basic indicators, CALTAGIRONE EDITORE is not utilizing all of its potentials. The current stock price uproar, may contribute to short-horizon losses for the private investors.

Compugroup Medical

Risk-Adjusted Performance

Good

Over the last 90 days Compugroup Medical SE has generated negative risk-adjusted returns adding no value to investors with long positions. Despite nearly fragile basic indicators, Compugroup Medical may actually be approaching a critical reversion point that can send shares even higher in August 2025.

Pair Trading with CALTAGIRONE EDITORE and Compugroup Medical

The main advantage of trading using opposite CALTAGIRONE EDITORE and Compugroup Medical positions is that it hedges away some unsystematic risk. Because of two separate transactions, even if CALTAGIRONE EDITORE position performs unexpectedly, Compugroup Medical can make up some of the losses. Pair trading also minimizes risk from directional movements in the market. For example, if an entire industry or sector drops because of unexpected headlines, the short position in Compugroup Medical will offset losses from the drop in Compugroup Medical's long position.

The idea behind CALTAGIRONE EDITORE and Compugroup Medical SE pairs trading is to make the combined position market-neutral, meaning the overall market's direction will not affect its win or loss (or potential downside or upside). This can be achieved by designing a pairs trade with two highly correlated stocks or equities that operate in a similar space or sector, making it possible to obtain profits through simple and relatively low-risk investment.

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Note that this page's information should be used as a complementary analysis to find the right mix of equity instruments to add to your existing portfolios or create a brand new portfolio. You can also try the Price Transformation module to use Price Transformation models to analyze the depth of different equity instruments across global markets.